HSA News for June 14, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Record 31 Million Americans Have Health-Care Coverage Through Affordable Care Act, White House Says
About 31 million Americans now have health-care coverage through the Affordable Care Act, the White House announced June 5, setting a record since the law was enacted in 2010. About 11.3 million Americans were enrolled in health-care plans through the ACA’s federal marketplaces, and 14.8 million people newly enrolled in Medicaid through the law’s expansion of eligibility.
The Health Insurance Public Option Might Be Fizzling. The Left Is OK With That.
Joe Biden campaigned on making the public option a reality, but so far, he's done little to get Congress to enact one. Influential progressives seem to be OK watching the promise go unfilled, preferring to pursue universal health care through other means, like expanding Medicare eligibility. The issue appears to have fallen off the national radar and will be difficult to revive without a major push by the White House.
Covid Was a Tipping Point for Telehealth. If Some Have Their Way, Virtual Visits Are Here to Stay.
Health industry leaders and many patient advocates are pushing Congress and the Biden administration to preserve the pandemic-fueled expansion of telehealth that has transformed how millions of Americans see the doctor. The broad effort represents an emerging consensus that many services can be provided easily and safely — and often more effectively — through a video chat, a phone call or even an email.
HSA Compliance Corner
IRS Extends 2020 HSA Contribution Deadlines in 2 States Due to Severe Storms and Flooding
The IRS recently announced that they have extended the 2020 tax filing deadline for victims of severe storms and flooding in certain counties of West Virginia and specific parishes of Louisiana. The delays move the final date to make HSA contributions for 2020 to June 30, 2021 (West Virginia) and August 16, 2021 (Louisiana) for taxpayers residing in the affected areas.
"Concierge Doctor" and HSAs? Be Sure to Understand the Implications!
Some primary care physician arrangements disqualify you from opening or funding a Health Savings Account. But which ones? It's a difficult question to answer because the term "concierge doctor," like "high deductible health plan," has a very specific definition, but it's also used as a generic term to describe a wider range of services (or medical coverage). The devil is in the details.
Should Dietary Supplements Be Eligible for Tax-Free Withdrawals?
Sen. Kevin Cramer (R-ND) has filed a bill to extend the list of qualified medical expenses for tax-free distributions from HSAs, health FSAs, and HRAs to include dietary supplements. The argument in favor of this expansion is the tax code doesn't favor goods and services that prevent medical problems. But there are several arguments against including nutritional supplements as qualified expenses.
HSA Industry News
Alegeus Announces Launch of New HSA Solution
Alegeus announced it will launch its modern HSA investment solution at the 2021 Alegeus Client Success Summit, June 15-16. According to Alegeus, the investment solution goes beyond anything currently available from an HSA provider, with features like real-time and fractional trading, a fully automated robo advisor, and a full range of investing models for every investor experience level.
HSA Industry Best Practices
Making the Case for Employer HSA Contributions
More employers are maximizing their HSA program impact by choosing to contribute to employee HSAs. Employer HSA contributions directly drive employee engagement, boost employee HSA contributions and ultimately net more FICA tax savings for both employers and employees.
The HSA Market
These Little Known Health Insurance Options May Save Small Employers Big Money
Health insurance benefits remain among the top priorities for employees when considering a job in 2021, according to numerous studies. The problem for small employers is being able to provide these benefits affordably and competitively, particularly in a tight labor market. Two little known plans could help -- QSEHRAs and ICHRAs. Neither is getting the attention it deserves.
Employer Health Costs Projected to Rise 6.5% in 2022 Due in Part to COVID-19
Although employer health spending is projected to increase 6.5% in 2022, the deflators identified by PwC will likely have a mitigating effect. One is consumerism: More people are shopping around for care, and millions have become more familiar with receiving care in lower-cost and more convenient ways during the pandemic – shifts in behavior that will likely reduce healthcare spending.
Maximizing Your HSA
HSAs Didn't Receive Same Pandemic Relief as Health FSAs. Was That Fair?
New rules increasing Health FSA flexibility didn't affect HSAs. Was this mere legislative or administrative oversight? Were HSAs purposely left out of the new flexibility because politicians prefer Health FSAs?
Hardly. The reason that HSAs were largely unaffected by these temporary changes is simple: They already have this level of flexibility built in.
Consumer-Driven Health Care
How COVID-19 Has Changed the Way US Consumers Think About Healthcare
The COVID-19 pandemic has changed consumer behavior. Based on McKinsey surveys of US consumers, many of the shifts could stick after the pandemic. Consumers are reconsidering how they plan to address mental- and physical-health challenges, how they think about getting healthcare, how they will manage their care needs, and how they expect to do business with healthcare companies.
Can a Subscription Model Fix Primary Care in the US?
Direct primary care companies face stiff competition from one another as well as the large regional health systems and their affiliated physician groups. The appeal of these companies has grown as employers increasingly seek to address a shortage of high-quality primary care and reduce spending on the health of their workforce.
Amazon and Walmart Are Competing to Offer You the Cheapest Prescriptions, and It Could Shake Up the Entire Pharmacy Industry
Amazon and Walmart are engaged in a fierce competition to offer the cheapest prescriptions to members of their subscription programs, a price war that could benefit consumers and harm rival pharmacies.